Dollar Weakens as Inflation Cools, Apple Makes History with $3 Trillion Market Cap
Aa
Share
- Dollar weakens as inflation cools
- Apple reaches historic $3 trillion market cap
- Fed rate hike bets eye a peak at 5.410%
US stocks are rallying after the Fed’s favorite inflation gauge showed the disinflation process remains intact and the consumer is showing signs of weakness. A hot inflation report and Fed swaps might have been convinced that a second-rate hike by year end was likely. Treasury yields edged lower after the PCE report was a little dovish.
US Data
The core personal consumption expenditure index, a key reading followed by the Fed rose 0.3% in May, matching the consensus estimate. On annual basis, the PCE reading dropped from 4.7% to 4.6%. Personal spending came in softer at 0.1%, while the prior reading was revised lower from 0.8% to 0.6%. The consumer is starting to look a lot weaker and that should support inflation to drop even further over the coming months.
Apple
Apple is attempting to become the first $3 trillion company as Wall Street remains all-in on mega-cap tech stocks. Last month, Apple’s capitalization became more valuable than the entire Russell 2000 and it seems like that could widen further. Apple got a boost after Citi raised their price target to a Street-high price of $240. Apple’s outlook remains solid given their balance sheet and future revenue projects, but these latest gains might be more of a defensive switch for traders who see a US economy that is recession bound.
